The bookend of the Volkswagen diesel scandal has arrived in the form of a settlement associated with the company’s V-6 diesel engine. A federal judge has issued an approval of an agreement to fix or buy back 88,500 vehicles equipped with Volkswagen’s 3.0-liter diesel at a cost of $1.22 billion.
A settlement relating to the 3.0-liter V-6 has been the remaining piece of the VW diesel scandal after U.S. District Judge Charles Breyer approved a settlement last fall related to the company’s 2.0-liter diesel engine worth $14.7 billion dollars. Today’s settlement pales in comparison to the four-cylinder settlement, largely because the volume of vehicles is much less.
The 3.0-liter situation isn’t quite as straight forward as the 2.0-liter settlement. There are technically two generations of the 3.0-liter V-6 on the market that are covered under the settlement. The Generation One 3.0-liter is found in 2009-2012 VW, Audi and Porsche vehicles. It has been deemed impossible to get this engine up to its certified emissions level, so owners can either have their vehicle bought back or a fix made on the engine that will bring it close to certification levels if said fix is approved by the EPA and CARB.
Compensation for owners of the oldest 3.0-liter engines will range $7,755 to $13,880.
The second generation is found in 2013-2016 models and is deemed to be fixable. That said, the fix isn’t approved by the EPA or CARB yet. Assuming the fix is approved, all of these vehicles will be repaired and owners will be compensated from $7,039 to $16,114. If the fix isn’t approved, the settlement will be adjusted to buy back these vehicles as well.
In addition to VW’s settlement regarding this engine, Judge Breyer also approved a settlement with one of the engine’s suppliers. Robert Bosch GmbH will be required to compensate owners of the 3.0-liter V-6 $327.5 million for their role in developing the engine.
Assuming the second generation engine is fixed, all of those unsold 2015 models will be able to be sold with mega discounts on the hood!